Steel Stocks Show Signs Of Life

The steel stocks have been one of the few sectors to fail at any sort of rally in the last two months. While other stocks like Southern Copper Corporation (USA) SCCO have doubled in price, steel plays have stayed near their 2010 lows. Recently, United States Steel Corporation X reported earnings which were down right ugly. The stock dropped even more. Over the last few days, steel stocks have started to turn around. Whether it is short covering, buyers or the China PMI numbers which showed major growth, they have had a fantastic move in just the last few days. U.S. Steel has jumped from $40.25 three days ago to a high today of $45.10. AK Steel Holding Corporation AKS has jumped from $12.22 three days ago to a high today of $13.23. All of a sudden, these stocks are showing signs of life. While the recent moves are great, the key is to not chase them. Let them come back in and retrace a portion of the move. Once that happens, if the markets remain strong, these stocks may be a solid play to the upside. Gareth Soloway Chief Market Strategist www.InTheMoneyStocks.com #1 Rated